Trump Hosts AI Summit

>> LIVE FROM WASHINGTON, D.C., THIS IS "BALANCE OF POWER" WITH JOE MATHIEU AND KAILEY LEINZ. JOE: IT IS THE MOUNT RUSHMORE OF AI ALL IN ONE ROOM. WELCOME TO THE TUESDAY EDITION AS PRESIDENT TRUMP ASSEMBLES TOP EXECUTIVES FROM THE ARTIFICIAL INTELLIGENCE INDUSTRY WITH HUGE QUESTIONS ABOUT REGULATION, SAFETY, AND LIABILITY, ALL AMID THE RACE WITH CHINA. I'M JOE MATHIEU ALONGSIDE KAILEY LEINZ IN WASHINGTON. IT IS A WHO'S WHO. TYLER KENDALL HAS BEEN RUBBING ELBOWS WITH SOME OF THOSE IMPORTANT PEOPLE IN THE INDUSTRY. BUBBLE, THIS LUNCHEON? -- WHAT WILL COME OF THIS LUNCHEON? KAILEY: TYLER HAS SPOKEN WITH ALEXA ALEX CORA PALANTIR. ALEX KARP IS SITTING PRETTY FAR AWAY FROM ANTHROPIC'S DARIO AMODEI AND FLANKING THE PRESIDENT ON HIS LEFT-HAND SIDE, ELON MUSK ON HIS RIGHT. JOE: I'M GUESSING ELIZABETH WARREN DID NOT APPROVE OF THE SEATING CHART. THIS IS WHAT SHE WAS AFRAID OF AT THE STATE DINNER WITH THE CHINESE LEADER AND HERE WE ARE AGAIN. IF POINT OUT THAT DARIO. HE WAS AT THE STATE DINNER. WHETHER THIS RESOLVES A CONVERSATION ABOUT REGULATION ARE NOT AS YET TO BE DETERMINED. THEY WERE TALKING ABOUT THE GOLDEN AGE EARLY THIS MORNING. KAILEY: AMERICA.GOV FOR SOMETHING THE PRESIDENT SAYS HE IS PROUD OF. AI POWERED ACCESS TO VARIOUS GOVERNMENT WEBSITES, DATABASES, INSTRUCTIONS ON THINGS LIKE HOW TO GET A PASSPORT FOR A TODDLER. THAT IS WHAT I WAS USING IT FOR TODAY AS I CHECKED OUT THE WEBSITE. IT DID FEET INSTRUCTIONS. I HAVE NOT ACTUALLY TESTED IT OR FOLLOWED THROUGH WITH THOSE INSTRUCTIONS BUT I DID PLUG SOMETHING IN AND DID RECEIVE AN OUTPUT. ALL THESE CONVERSATIONS ARE HAPPENING IN WASHINGTON TODAY AFTER WE GOT NEWS THAT OPENAI IS DELAYING ASTRA 6.1 BECAUSE OF SAFETY CONCERNS. SHOULD I CONTINUE TO BE ON COMPANIES TO DO IT THEMSELVES OR DOES THERE NEED TO BE A REGULATORY REGIME IN PLACE? JOE: WE FIND OUT ABOUT DOZENS OF HACKS WEEKS AFTER THEY TAKE PLACE. IT IS A FLUID SITUATION AND WHAT WE PROBABLY WILL NOT GET TO THE BOTTOM OF TODAY. WE WILL TALK ABOUT AI WITH JAMES COMER, CHAIRMAN OF THE HOUSE OVERSIGHT COMMITTEE. KAILEY: LOOKING FORWARD TO THAT CONVERSATION BUT WOULD BEGIN WITH A CHECK ON THE MARKETS, BECAUSE THERE IS INCREDIBLE ACTION TODAY IN THE BOND MARKET. 30-YEAR YIELD THE HIGHEST SINCE 2002. CHARLIE: 5.61 PERCENT RIGHT NOW ON THE 30-YEAR. 10-YEAR, 5.28%. FIVE-YEAR, FIVE POINT ZERO 9%. TWO-YEAR, 4.92%. 5..61 -- 5.61%. STOCKS LOWER WITH THE S&P DOWN 27. .4%. DOW INDUSTRIALS DOWN .6%. NASDAQ COMPOSITE DOWN .3%. VIX JUST ABOVE 16. 30-YEAR, 5.61%. GOLD UP .7%. MAJOR MOVE LOWER IN CRUDE. $90.64 A BARREL. BRENT, 103.90. CRYPTO FALLING BELOW $83,000. DOWN BY ABOUT .6%. FOR OTTOMAN NEWS 25 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHERE GET YOUR PODCASTS. THAT IS A BLOOMBERG BUSINESS FLASH. KAILEY: CHARLIE PELLETT IN NEW YORK, THANK YOU. I'M KAILEY LEINZ ALONGSIDE JOE MATHIEU IN WASHINGTON, A VERY BUSY TOWN. IT IS A WHO'S WHO OF LEADERS OF THE TECH AND AI SPACE WHO HAVE DESCENDED UPON THE WHITE HOUSE FOR A SUMMIT WITH PRESIDENT TRUMP AND THE SPEAKER THE HOUSE MIKE JOHNSON. MARK ZUCKERBERG, SUNDER CHAI, SATYA NADELLA, DARIO, ELON MUSK, JENSEN HUANG. YOU CAN GO AROUND THE TABLE WITH THE NAMES WHO ARE GOING TO BE PRESENT. I WILL ASK IT AGAIN. WHETHER ANYTHING COMES OUT OF THIS OR IT IS JUST A CHANCE TO TALK. JOE: AND PROMOTE AMERICAN AI. THAT IS WHY TYLER KENDALL HAS BEEN STANDING BY AHEAD OF OUR CONVERSATION WITH CHAIR COMER. SHE IS JUST OUT -- INSIDE THE WHITE HOUSE COMPLEX. IMAGINE 17TH THE NEW YORK AS YOU WALK INTO WHAT WE USED TO CALL THE OLD EXECUTIVE OFFICE BUILDING. THIS IS WHERE TYLER IS STANDING. AS THEY CAME BACK FROM BELL AUDITORIUM THEY HAD TO FILE THROUGH THERE. WITH THE EXCEPTION OF DARIO. YOU HAVE BEEN TALKING TO A NUMBER OF THESE FOLKS, INCLUDING ALEX KARP. WHAT IS THE MOOD? TYLER: TO ANSWER THE QUESTION THAT KAILEY POSE, IT DOESN'T FEEL LIKE WE ARE GOING TO GET ANY SORT OF TANGIBLE WAY FORWARD FOR THE FUTURE OF REGULATION IN THE INDUSTRY. TODAY'S BEEN ABOUT THE WHITE HOUSE TOUTING THE TECHNOLOGY, STARTING WITH THAT EVENT IN DOWNTOWN WASHINGTON REGARDING THIS NEW AI ENABLED TOOL THAT THE WHITE HOUSE SAYS IS GOING TO MAKE IT EASIER FOR THE AMERICAN PUBLIC TO INTERFACE WITH THE GOVERNMENT. NOW LEADING UP TO THIS MEETING. THERE ARE A LOT OF BIG TECH LEADERS AND AS I'M TALKING TO THEM, ALL OF THEM ARE TOUTING WORKING WITH THE ADMINISTRATION AND WALKING THE LINE EVEN THOUGH WE KNOW SOME OF THE INDUSTRY, INCLUDING WHEN IT COMES ANTHROPIC, HAVE BEEN URGING CAUTION AND A SLOWDOWN OF PACING AS IT HAS BEEN CALLED WHEN IT COMES TO AI DEVELOPMENT. ONE OF THE PEOPLE I SPOKE WITH WAS THE CEO OF PALANTIR ALEX KARP. I ASK THAT YOU HAVE HOUSE SPEAKER MIKE JOHNSON INSIDE THAT ROOM. THAT'S IMPORTANT BECAUSE IT MEANS CONGRESS COULD BE LOOKING AT SOME WAY FORWARD, ALTHOUGH THE EXPECTATION IS WE WILL NOT GET LEGISLATION ANYTIME SOON. ALEX KARP TOLD ME HE WILL SPEAK TO ANYONE. HAVE YOU BEEN TALKING WITH LAWMAKERS ON CAPITOL HILL? >> AS YOU SEE, I WILL AVOID SPECIFICS. PEOPLE WOULD BE STUNNED HOW MANY PEOPLE DON'T LIKE ME. I KNOW YOU WOULD THINK THAT'S POSSIBLE. THEY CALL ME WHO DO LIKE ME. ONE OF THE REASONS THEY CALL ME? I NEVER TALK ABOUT WHAT THEY SAY. I TALKED TO EVERYBODY WHO WANTS TO TALK TO ME. I TELL THEM WHAT I THINK ABOUT WHERE THEIR BENEFITS ARE AND WHERE THE DANGERS ARE. I HONESTLY -- IF YOU HEARD MY CONVERSATION WITH THEM IT WAS NOT EXACTLY WAS MORE VULGAR WORDS THAT I'M TELLING YOU. TYLER: YOU HEARD ALEX KARP TALKING ABOUT THE LINE THESE EXECUTIVES HAVE TO WALK WHEN THEY ARE TALKING TO REGULATORS AND LAWMAKERS AND POLITICIANS. THE MAIN POINT IS THAT NOBODY WANTS TO SEE COMPETITION WHEN IT COMES TO CHINA. -- SEED COMPETITION WHEN IT COMES TO CHINA. PRESIDENT TRUMP SAID WE DO NOT SURRENDER TO FEARS OF WHAT TECHNOLOGIES WILL DO WHEN WE HAVE TO STAY AHEAD WHEN IT COMES TO THE AI RACE. KAILEY: TYLER KENDALL S JUST OUTSIDE THE WHITE HOUSE. THANK YOU FOR JOINING US. TO EXPAND THIS CONVERSATION, INCLUDING PREDICTION MARKETS, RETURNED TO THE CHAIR THE HOUSE OVERSIGHT COMMITTEE, REPUBLICAN CONGRESS BEEN JAMES COMER OF KENTUCKY IS JOINING US ONCE AGAIN ON BLOOMBERG TV AND RADIO. MR. CHAIRMAN, WELCOME BACK TO BALANCE OF POWER WANT TO GET TO YOUR ANNOUNCEMENT ON THE EXPANSION OF A PROBE INTO INSIDER ON PREDICTION MARKETS. IF WE CAN BEGIN WITH AI, THE PRESIDENT SUGGESTS THIS IS NOT A SPACE THAT SHOULD BE REINED IN AND IT SHOULD BE ENCOURAGED. DO YOU SEE REASON FOR SAFEGUARDS AROUND TECHNOLOGY AND THE CAPABILITIES IT MIGHT POSSESS? REP. CINER: OF COURSE WE SEE REASON FOR SAFEGUARDS. THERE IS BIPARTISAN SUPPORT IN CONGRESS TO PROVIDE SAFEGUARDS TO THE AMERICAN PEOPLE AND PUT GUARDRAILS. WE DON'T WANT TO HAVE ANY UNINTENDED CONSEQUENCES WITH AI. MOST PEOPLE IN CONGRESS WILL ACKNOWLEDGE THAT CONGRESS REALLY DOESN'T KNOW WHERE TO BEGIN IN CREATING A REGULATORY FRAMEWORK FOR AI. WE KNOW THIS. WE WANT AMERICA TO BE THE LEADER IN ARTIFICIAL INTELLIGENCE. WE DON'T WANT CHINA TO BE THE LEADER. THAT IS THE MESSAGE THAT PRESIDENT TRUMP IS TRYING TO CONVEY. WE NEED TO DO THIS IN THE UNITED STATES. HAVING SAID THAT, THERE IS OVERWHELMING BIPARTISAN SUPPORT IN CONGRESS TO CREATE A REGULATORY FRAMEWORK. A LOT OF REPUBLICANS, WHEN THE FOUR CEOS CAME OUT AND CAUTIONED OF A POTENTIAL DOOMSDAY SCENARIO, WE ARE CONCERNED ABOUT THE DIGITAL DOOMSDAY SCENARIO BUT WE DON'T WANT TO FEEL WHAT HAS HAPPENED IN HEALTH CARE ANYTIME THE COMPANY'S TO CONGRESS WHEN HE CHANGES OVER FORMS. IT ALWAYS ENDED UP BEING LESS COMPETITION AND BIGGER HEALTH CARE COMPANIES THAT WERE TOO BIG TO FAIL. WE DON'T WANT TO SEE THE HAVE -- SEE THAT HAPPEN WITH AI AND PROHIBIT THE NEXT BIG START FROM EMERGING AND BEING A PLAYER IN AI. THAT IS WHAT SOME OF US FEARED INITIALLY WHEN THOSE FOUR CEOS CAME OUT. MAYBE THERE FRAMEWORK WOULD SOMEHOW CREATE A MONOPOLY. WE DO NOT WANT TO STIFLE COMPETITION. JOE: THE PRESIDENT HAS BEEN PRETTY CLEAR AND WROTE THAT HE DOESN'T THINK THERE SHOULD BE ANY CHANGES AND WINNING THE RACE WITH CHINA SHOULD IN FACT BE THE PURPOSE AND THE GOAL HERE. THAT COMPANIES SHOULD CARRY THEIR OWN LIABILITIES. IF THERE IS A RATIONALE ON CAPITOL HILL FOR ACTION, DIBU THE PRESIDENT WOULD SUPPORT IT? REP. COMER: I THINK HE WOULD IF IT WAS WITHIN REASON. THE PRESIDENT HAS EVERY REASON TO HAVE LITTLE CONFIDENCE IN CONGRESS. THE SENATE HAS NOT BEEN VERY PROLIFIC THIS YEAR IN PASSING LEGISLATION. THAT FRUSTRATED THE PRESIDENT A LOT AND A LOT OF THE MEMBERS OF CONGRESS AND WE WORKED HARD TO PASS BILLS THAT LINGERED IN THE SENATE FOR MONTHS AND MONTHS. I UNDERSTAND THE FRUSTRATION WITH CONGRESS BUT I DO THINK IF WE CAN ALL AGREE, AND I APPLAUD THE PRESIDENT FOR HAVING THOSE LEADERS TO THE WHITE HOUSE TODAY. I THINK A GOOD OPEN TRANSPARENT DISCUSSION SETS THE STAGE FOR CONGRESSIONAL ACTION. CONGRESS SHOULD NOT BE IN A RUSH TO SET UP A REGULATORY FRAMEWORK. EVERY TIME CONGRESS RUSHES TO DO THINGS LIKE THAT PPP LOAN PROGRAM WE END UP WITH A LOT OF UNINTENDED CONSEQUENCES AND WASTE, FRAUD, AND ABUSE. WE WANT TO PROTECT THE PUBLIC. WE DON'T WANT TO ALLOW ANY TYPE OF POTENTIAL DOOMSDAY SCENARIO TO HAPPEN IF THERE IS SUCH A THING AS A KILL SWITCH. THOSE OF US IN CONGRESS WOULD OVERWHELMINGLY SUPPORT THAT. WE WANT TO MAKE SURE WE DO NOT DO ANYTHING TO HINDER ANY START UPS. WE DON'T WANT TO CREATE A MONOPOLY IN A NEW EMERGING INDUSTRY AT THE FOREFRONT OF ALL THE GROWTH ON WALL STREET RIGHT NOW. KAILEY: LET'S TALK ABOUT ANOTHER EMERGING INDUSTRY YOU ARE INVESTIGATING AND THAT IS PREDICTION MARKETS AND INSIDER TRADING ON THEM. YOU OPENED INVESTIGATIONS INTO KALSHI AND POLYMARKET. YOU ANNOUNCED DOCUMENTS FROM HYPER LIQUID, CRYPTO.COM, IS THE ROOT OF THE CONCERNED ABOUT THE PLATFORMS THEMSELVES OR THE USERS OF THEM? REP. COMER: IT'S A LITTLE BIT OF BOTH AND WE ARE NOT ACCUSING ANYONE OF ANY WRONGDOING. WE HAVE SEEN REPORTS OF INSIDER TRADING WITH. SOME OFTHE OTHER PREDICTION MARKETS THERE SHOULD NEVER BE A SCENARIO WHERE A GOVERNMENT EMPLOYEE PROFITS OFF OF INSIDER OR CLASSIFIED INFORMATION. IF YOU LOOK AT THE CONGRESSIONAL RACES THAT ARE TAKING PLACE THIS MIDTERM, YOU ARE SEEING CANDIDATES IN BOTH PARTIES HAVE A BIG PART OF THEIR PLATFORM PROHIBITING MEMBERS OF CONGRESS FROM TRADING STOCKS. THAT SAME AMOUNT OF SUPPORT IN THE PUBLIC IS OUT THERE TO ENSURE INSIDERS ARE NOT PROFITING OFF THE PREDICTION MARKETS WITH INSIDER KNOWLEDGE IN CLASSIFIED INFORMATION. WE DO KNOW THEY HAVE BEEN PEOPLE THAT HAVE DONE THAT. WE WANT TO KNOW WHAT THESE COMPANIES DO TO HAVE GUARDRAILS. DIG -- WHAT DID THEY DO IF THEY IDENTIFY SUSPICIOUS TRADE? WE WANT TO KNOW WHAT THE PREDICTION MARKETS ARE DOING AND HOW THEY ARE HANDLING FOR THE CHILL INSIDER TRADING, PARTICULARLY WITH GOVERNMENT INSIDE INFORMATION SO CONGRESS CAN SET A REGULATORY FRAMEWORK. THE PREDICTIONS MARKETS, AI, DATA CENTERS, ALL THESE THINGS ARE REALLY NEW INDUSTRIES THAT HAVE REALLY CAUGHT THE ATTENTION OF THE AMERICAN PUBLIC. THE AMERICAN PUBLIC EXPECTS CONGRESS TO DO SOMETHING ABOUT IT. WE WANT TO DO SOMETHING ABOUT IT. WE ARE NOT SURE WHAT THE BEST PATH FORWARD IS. I DON'T THINK THAT IS A PART IS A DISAGREEMENT. IT IS THE FACT THE INDUSTRY IS A RELATIVELY NEW AND IT'S GROWING SO RAPIDLY, WE DON'T WANT TO DO ANYTHING TO STIFLE THE GROWTH OR HURT JOE: COMPETITION. JOE:HOW MANY OF YOUR COLLEAGUES, HOW MANY OTHER STAFF ARE USING SITES LIKE POLYMARKET AND KALSHI ON A REGULAR BASIS? REP. COMER: I DON'T KNOW. I WOULD HOPE NO ONE IN CONGRESS WOULD. JOE: HOW PROLIFIC IS THE PROBLEM? REP. COMER: I HAVE NOT SEEN MEMBERS OF CONGRESS DO IT. IT IS NOT ILLEGAL. IT PROBABLY NEEDS TO BE. IF WE CAN GET OUR INFORMATION BACK FROM THESE COMPANIES, WE WILL TRY TO PASS SOME TYPE OF LEGISLATION BANNING MEMBERS OF CONGRESS, BANNING GOVERNMENT EMPLOYEES FROM DOING THIS. IF YOU WANT TO BET ON SPORTS GAMES OR THINGS LIKE THAT, THERE ARE OTHER PLATFORMS TO DO THAT. THESE PREDICTION MARKETS, WHICH I SUPPORT -- I THINK IT'S A GREAT CONCEPT, BUT IT DOES NOT NEED TO BE ABUSED BY GOVERNMENT EMPLOYEES. THAT CAN LEAD TO NATIONAL SECURITY CONCERNS AGAIN, NO GOVERNMENT EMPLOYEE SHOULD PROFIT OFF OF BET BASED ON INSIDER INFORMATION OR CLASSIFIED INFORMATION AND THAT IS THE GOAL OF WHAT WE ARE TRYING TO DO. WE ARE TRYING TO LEARN FROM THE COMPANIES HOW THEY ATTRACT -- HOW THEY IDENTIFY SUSPICIOUS TRADES AND TRY TO PREPARE LEGISLATION THAT WILL NOT HINDER THEIR GROWTH BUT ENSURES THERE ARE METHODS IN THE PRODUCTION MARKETS AND GOVERNMENT EMPLOYEES AND POLITICIANS ARE NOT PROFITING FROM THESE PREDICTION MARKETS. KAILEY: WHAT ABOUT FAMILY MEMBERS, INCLUDING THAT OF THE FIRST FAMILY LIKE DON JR. WHO HAS HAD BUSINESS TIES TO BOTH KALSHI AND POLYMARKET? THAT WAS IN A LETTER REPUBLICAN SENATOR JOHN CURTIS SENT TO THE JUDICIARY COMMITTEE LAST WEEK SAYING THAT ALONG WITH A RUSSIAN OLIGARCH PAYING FOR CELEBRATIONS AROUND HIS WEDDING FESTIVITIES SHOULD BE INVESTIGATED. HE SAID HOLD DON JR. TO THE SAME STANDARD THAT HUNTER BIDEN WAS HELD TO. YOU INVESTIGATED FORMER PRESIDENT BIDEN'S SON. WOULD YOU OPENED AN INVESTIGATION INTO DON JR.? REP. COMER: I THINK ANYTHING A PRESIDENT'S IMMEDIATE FAMILY DOES IS SUBJECT TO TRANSPARENCY. I THINK THE AMERICAN PEOPLE DESERVE TO KNOW. THERE ARE NO LAWS ON THE BOOKS WITH RESPECT TO PREDICTION MARKETS AND GOVERNMENT EMPLOYEES AND THE IMMEDIATE FAMILY MEMBERS OF POLITICIANS, BUT I THINK THERE SHOULD BE. I AM ALL ABOUT TRYING TO CREATE A LEGISLATIVE PACKAGE THAT WILL ENSURE POLITICIANS OR THEIR IMMEDIATE FAMILIES DO NOT PROFIT FROM INSIDER GOVERNMENT INFORMATION. I DON'T KNOW THAT DON JR. TRADES. THAT'S A FAIR QUESTION. I THINK HE SHOULD ANSWER THAT. AS FAR AS HAVING AN INVESTMENT IN SOME OF THESE PRIVATE COMPANIES, THAT IS NOT ILLEGAL. WITH RESPECT TO TRADING, THAT IS WHAT OUR INVESTIGATION IS BASED ON. NO GOVERNMENT EMPLOYEE, POLITICIAN, IMMEDIATE FAMILY MEMBER SHOULD BE TRADING AND PROFITING ON INSIDER GOVERNMENT INFORMATION. I THINK THAT IS WHERE THERE IS BIPARTISAN AGREEMENT. HOPEFULLY THESE PREDICTION MARKETS WILL WORK WITH US AT A QUICK PACE SO WE CAN CRAFT LEGISLATION AND GET IT PASSED BEFORE THE END OF THE CONGRESS. JOE: A LOT OF DEMOCRATS TELL US ON THE AIR DEMOCRATIC LAWMAKERS THAT IF THEY WIN THE MAJORITY OF THE HOUSE IN NOVEMBER, THEY WILL BE A SERIES OF HEARINGS COMING AND YOU WILL SEE A LOT OF CORPORATE CEOS AND MAY BE MEMBERS OF THE TRUMP FAMILY AS THEY INVESTIGATE ANY NUMBER OF INSTANCES OF FUNNELING MONEY AND BENEFITS TO THE TRUMP -- SOME OF HIS TRADING SPECIFICALLY WHICH HAS BEEN OF TRANSACTIONS A MONTH BASED ON OUR REPORTING. WHAT IF THE POLLS ARE WRONG? IF THE REPUBLICANS MAINTAIN THE MAJORITY THE HOUSE, WITH U.S. CHAIRMAN PROMISE ANY INVESTIGATIONS INTO THIS YOURSELF? REP. COMER: IF WE FIND INSTANCES OF WRONGDOING, WE WILL INVESTIGATE. WE BROUGHT IN FOUR SITTING CABINET SECRETARIES BY ME IN THE OVERSIGHT COMMITTEE PERTAINING TO THE EPSTEIN INVESTIGATION. IT DOES NOT MATTER IF YOU ARE A REPUBLICAN OR DEMOCRAT, IF WE SEEK INFORMATION, WE ARE BRINGING YOU IN. A LOT OF ETHICS LAWS NEED TO BE REVIEWED. THERE'S A LOT OF THINGS THE DEMOCRATS ARE ON TV SAYING THEY WILL INVESTIGATE PRESIDENT TRUMP ON. IF PRESIDENT TRUMP IN FACT HAS DONE THOSE THINGS, THEY ARE NOT ILLEGAL. SHOULD THEY BE ILLEGAL? THAT IS UP TO CONGRESS TO DECIDE AND I THINK THERE WILL BE DISCUSSIONS ON WHAT A PRESIDENT OR THEIR IMMEDIATE FAMILY MEMBER IS ALLOWED TO DO IN BUSINESS IN THE FUTURE. IT IS A RELATIVELY NEW THING FOR A PRESIDENT -- WE HAVE SEEN IT IN THE LAST TWO PRESIDENTS, THEIR FAMILIES HAVE BEEN INVOLVED AND BUSINESS ENDEAVORS WHILE THE PRESIDENT HAS BEEN IN OFFICE. THAT IS KIND OF A NEW THING AND I THINK AS POLITICS EVOLVES AND CONGRESS HAS TO EVOLVE WITH IT AND THE ETHICS LAWS ARE CURRENT AND THE AMERICAN PEOPLE HAVE TRANSPARENCY. IF YOU ARE A PRESIDENT, YOU DESERVE TO TELL THE PEOPLE EXACTLY WHERE YOU ARE MAKING MONEY AND HOPEFULLY PRESIDENT TRUMP IS DOING THAT. JOE: THIS IS BLOOMBERG. CHARLIE: IT IS 1:21 ON WALL STREET. THE DOW, S&P, NASDAQ ALL IN THE RED. A DROP IN OIL PRICES DOING LITTLE TO EASE CONCERNS THAT STILL ELEVATED ENERGY COSTS COULD FUEL INFLATION AND SPUR RATE HIKES. STOCKS IN THE RED. DOW INDUSTRIALS DOWN 319, ANOTHER .6%. NASDAQ DOWN 76, A DROP OF .3%. VIX HOLDING JUST ABOVE 16. THE SOX INDEX HIGHER NOW BY 1.3%. TWO-YEAR YIELDING 4.93%. FIVE-YEAR, 5.10%. 30-YEAR RIGHT NOW THE HIGHEST SINCE 2002. THE YIELD IS 5.61%. GOLD UP $31 AN OUNCE. UP BY ABOUT 20%. WEST TEXAS INTERMEDIATE CRUDE. A BARREL OF BRENT IS $103.86. BITCOIN RIGHT AROUND $83,000. DOWN .6%. A SOURCE TELLS BLOOMBERG PIPER SANDLER IS IN TALKS TO BRING TOGETHER TWO BOUTIQUE INVESTMENT BANKS KNOWN FOR ADVISING ON M&A. SHARES OF PIPER LOWER BY 6.3%. PERLA WEINBERG PARTNERS UP 12.2 PERCENT. GOLDMAN SACHS DOWN .9%. MEASURE SUCCESS IN PLAN REPORTEDLY BREWING AT GOLDMAN. THE WALL STREET JOURNAL SAYS THE BOARD IS PREPPING CHIEF OPERATING OFFICER DON WALDRON TO TAKE OVER AS CEO FROM DAVID SOLOMON AS EARLY AS NEXT YEAR. AFTER EARNINGS, JEFFREY'S FINANCIAL GROUP LOWER BY .9%. S&P 500 INDEX DOWN .3%. 30-YEAR, 5.61%. RHONDA MENUS 25 HOURS A DAY SUBSCRIBED TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCASTS. THAT IS A BLOOMBERG BUSINESS FLASH. KAILEY: CHARLIE PELLETT CHECKING OUT THE MARKETS ON THIS TUESDAY. THANK YOU SO MUCH. I AM CHECK GOT AMERICA.GOV AGAIN. POPPING QUESTIONS INTO THIS AI SERVICE THAT APPARENTLY IS SUPPOSED TO AGGREGATE 29,000 GOVERNMENT WEBSITES AND PUT IT INTO ONE. I ASKED HOW I REGISTER TO VOTE. IT GOES TO THE BASIC ELIGIBILITY, INCLUDING YOU HAVE TO BE A U.S. CITIZEN AND NONCITIZENS CANNOT REGISTER TO VOTE ALREADY. IF .2 TO VOTE.GOV AS RULES DIFFER BY STATE OR TERRITORY -- IT POINTS YOU TO VOTE.GOV. JOE: INSTEAD OF GOING TO 100 DIFFERENT WEBSITES. KAILEY: USING AI TO MAKE NAVIGATING THE U.S. GOVERNMENT A LITTLE SIMPLER FOR USERS. AMERICA.GOV LAUNCHING TODAY HAS ALSO LED TO A NUMBER OF TECH EXECUTIVES BEING HERE IN D.C. AND GATHERING FOR LUNCH WITH THE PRESIDENT, WHICH IS ONGOING. JOE: WITH THE PRESIDENT AND THE SPEAKER THE HOUSE. WE WERE TALKING TO CONGRESSMAN JAMES COMER. YOU WONDER IF THERE IS ANY DIALOGUE ABOUT A FRAMEWORK OR MAYBE AN ATTEMPTED REGULATION. THE SPEAKER WILL BE THERE TO LISTEN TO IT BUT HE'S LARGELY BEEN ECHOING THE PRESIDENT, THAT THIS IS NOT AN INDUSTRY IN NEED OF REGULATION. THE LAWS ON THE BOOKS WHEN IT COMES TO LIABILITY ARE PRETTY CLEAR. KAILEY: WE TALKED TO THE CHAIR THE HOUSE OVERSIGHT COMMITTEE JAMES COMER WHO SAID THERE IS AGREEMENT THAT SOME GUARDRAILS NEED TO BE IN PLACE BUT HE DOES NOT WANT TO SEE ANOTHER INDUSTRY REGULATED TO THE POINT OF REDUCING COMPETITION. JOE: LET'S GET INTO THIS WITH OUR POLITICAL PANEL. RICK DAVIS AND JEANNE SHEEHAN ZAINO. RICK IS A REPUBLICAN STRATEGIST AND PARTNER AT STONECOURT CAPITAL. JEANNE, DEMOCRACY VISITING FELLOW AT THE ASH CENTER. RICK, WHAT IS YOUR THOUGHTS ON THIS? OPENAI AT THE MOMENT IS THE POSTER CHILD OF DOING SOMETHING RIGHT, SELF POLICING BY DELAYING THE RELEASE OF ITS NEXT MODEL WHICH IS APPARENTLY NOT SECURE ENOUGH TO BE UNLEASHED ON THE WORLD. IS IT SHOWING US WHAT THE MODEL SHOULD BE ARE -- OR DOES THE GOVERNMENT NEED TO GET INVOLVED? RICK: YOU HAVE TO LIKE SELF POLICING. THAT SHOWS RESPONSIBILITY THAT I THINK THE AMERICAN PEOPLE ARE SCRATCHING THEIR HEADS WONDERING ARE THESE PEOPLE WHO WE REALLY DON'T KNOW THAT WELL GOING TO BE ABLE TO CONTAIN ANY KIND OF CONTAGIONS THAT COME OUT OF THEIR SANDBOX. AT THE OTHER SIDE OF THE EQUATION I THINK IT ALSO HURTS THEY ARE NOT THAT MANY REGULATIONS GOVERNING THESE THINGS. YOU CAN'T PRESUPPOSE EVERYBODY KNOWS SO MUCH ABOUT THE AI INDUSTRY THAT THEY WOULD KNOW THAT IT IS NOT THOROUGHLY REGULATED. ESPECIALLY CONSIDERING THE ONLY THING YOU ARE HEARING THESE DAYS IS HOW SYSTEMIC THE PROBLEMS ARE AND HOW CONSEQUENTIAL THEY COULD BE. I THINK THE MORE THE PUBLIC IS INFORMED, THE MORE LIKELIHOOD THERE IS PRESSURE IN FUTURE CONGRESSES TO REGULATE. I THINK THIS IS KIND OF THE TIP OF THE ICEBERG WHEN IT COMES TO COMPANIES ACTUALLY SAYING WE ARE NOT GOING TO GO PUBLIC OR NOT RELEASE THIS MODEL OR NOT DO SOMETHING BECAUSE WE ARE CONCERNED ABOUT THE PRODUCT WE OURSELVES HAVE DEVELOPED. KAILEY: THAT IS WHAT WE ARE SEEING HAPPENING TO JOE'S POINT WITH CHATGPT DELAYED OVER SAFETY CONCERNS. THE PRESIDENT HAS ARGUED WE SHOULD NOT BE DOING THINGS LIKE SLOWING OR PACING, ALTHOUGH THAT DEFINITION IS OPEN TO INTERPRETATION, DUE TO A COMPETITION WITH CHINA. TO GET BACK TO THE POINT ABOUT THE PUBLIC FLUENCY IN THIS EFFICIENCY -- IN THIS ISSUE, HOW MUCH IS AN AMERICAN HEARING ABOUT THE CAPABILITIES OF THE TECHNOLOGY CARE ABOUT WHETHER OR NOT THE U.S. OR CHINA IS GOING FIRST? JEANNE: BUT AMERICANS CARE ABOUT AND WHY THIS SUMMIT IS SO TONE DEAF IS THEY CARE ABOUT THEIR JOBS, THEIR FUTURE, THEIR KIDS FUTURE, AND THEIR LIVES WHICH THEY LOOK AROUND AND SEE ARE SO MUCH TIED UP WITH THIS NEW TECHNOLOGY, OF WHICH THE FEDERAL GOVERNMENT HAS NOT REGULATED. IF THIS SUMMIT WAS SERIOUS IN TERMS OF REGULATION AND NOT JUST CELEBRATING BILLIONAIRES, WHAT THEY WOULD HAVE WOULD BE DISSENTING VOICES FROM SILICON VALLEY AND ELSEWHERE. THEY WOULD HAVE REFLECTED THE VIEWS OF THE POPE WHO IN HIS MAY UPS OF TALKED ABOUT THE FACT THAT WE NEED GUARDRAILS. THE IDEA OF AI AS THIS WHOLE DOOM OR IDEA IS NOT A HOAX. CAPITALISM HAS NEVER BEEN PREDICATED ON THE IDEA OF AN UNFETTERED, UNREGULATED INDUSTRY. WE HAVE HAD A LOT OF INDUSTRIES COME UP VERY SUCCESSFULLY IN CAPITALIST SYSTEMS AND ALL OF THEM HAVE BEEN REGULATED FROM THE AUTO INDUSTRY TO THE NUCLEAR INDUSTRY TO THE AIRLINE INDUSTRY TO THE SHIPPING INDUSTRY. PARTICULARLY WHEN THEY HAVE SUCH A HUGE IMPACT OR POTENTIAL IMPACT ON THE LIVES OF THE PEOPLE, THEIR CHILDREN, AND GRANDCHILDREN. THE IDEA THAT THERE'S NOT GOING TO BE REGULATION BECAUSE WE WANT TO BE CHINA, YOU KNOW WHO HAS A LOT OF REGULATION ON AI? CHINA. AND THEY ARE DOING QUITE WELL IN TERMS OF THEIR DEVELOPMENT. NOT AS WELL AS US, BUT THEY COULD THREATEN TO BECAUSE THEY KNOW HOW TO DRAW THE LINE ON THIS. OUR GOVERNMENT AS IT HAS BEEN FOR A WHILE ON THE FEDERAL LEVEL IS WOEFULLY BEHIND. WE HAVE HAD AI FOR A DECADE AND A HALF, THIS IS NOT NEW AND THE NEED HAS BEEN GREAT A LONG TIME AND THIS SUMMIT IS NOT UP TO THE TASK BEYOND CELEBRATING THESE BILLIONAIRES AND THIS AMERICA, THIS NEW AI GOVERNMENT SITE THAT THEY ARE TALKING ABOUT, WHICH IS WONDERFUL BUT DOESN'T ADDRESS THE REGULATORY ISSUES. . JOE: RICK, WHAT IS THE INVESTOR SUPPOSED TO DO WITH ALL OF THIS? YOU SPENT ENOUGH TIME WORKING ON CAPITOL HILL WHO KNOW HOW LONG THINGS TAKE TO BECOME LAW, BUT YOU ALSO KNOW HOW QUICKLY THINGS CAN HAPPEN WHEN THERE IS SUDDENLY URGENCY LIKE WE ARE FEELING AROUND THIS WHOLE TOPIC NATIONALLY. DO INVESTORS SEE THROUGH THIS OR COULD THIS BE A GAME CHANGING MOMENT WHEN IT COMES TO THE FINANCIALS BEHIND ARTIFICIAL INTELLIGENCE? RICK: LOOK, THERE IS AN ENORMOUS AMOUNT OF INVESTIGATION, RESEARCH, AND WORK IN DONE AROUND EVERY ASPECT OF THE AI ECOSYSTEM. WE TALK A LOT ABOUT THE POLITICS OF DATA CENTERS. WHEN YOU LOOK AT INVESTING COMMUNITY AS THEY ARE LOOKING AT EVERY ASPECT, TRANSMISSION, POWER GENERATION, WHERE AND HOW ARE YOU GOING TO GET THE CHIPS, THE ECONOMICS OF COOLING SYSTEMS. IT HAS BEEN PULLED APART A NUMBER OF WAYS AND THE SAME GOES FOR THE COMPETITIVE ADVANTAGES NOW YOU SEE PER YEAR WITH AMAZING VALUATIONS THAT ECHO REAL CHANGES IN WHAT WE ARE GOING TO SEE IN PUBLIC MARKETS. I KNOW THAT I TALK TO QUITE A FEW INVESTORS IN THIS SPACE WHO ARE VERY, VERY INTERESTED IN KNOWING WHAT A NEW CONGRESS WOULD LOOK LIKE REGULATORY RELIEF. NOBODY EXPECTS THAT TO LAST, THE WILD WEST, AND THAT IS NOT TERRIBLY DIFFERENT THAN A LOT OF NEW INDUSTRIES. THEY ARE REGULATED AFTER THEY GREW. THERE ARE LIKELY TO BE A LOT OF EFFORTS AROUND REGULATORY ACTIVITY. KAILEY: AND TO THE NOTION OF BEING REGULATED AFTER GROWING, WHAT WE HEARD FROM THE CHAIR OF THE OVERSIGHT COMMITTEE AS THEY DON'T WANT TO REGULATE TO THE POINT WERE NO ONE ELSE'S CAPABLE OF GROWING OTHER THAN THE PRE-EXISTING PLAYERS WHO THEN JUST HAVE TOO GREAT OF A FOOTHOLD AND THE BARRIERS OF ENTRY BECOME TOO LARGE FOR OTHERS TO GET INVOLVED. IS THERE MERIT TO THAT ARGUMENT? JEANNE: THERE ABSOLUTELY IS AND THAT IS ALWAYS THE LINE THAT WE HOPE OUR GOVERNMENT WALKS. THAT'S PART OF THE REASON WE NEED REGULATION BY THE GOVERNMENT . THIS IDEA THAT THESE COMPANIES WILL DESIGN THE SCHEME REGULATORY LEE MEANS IT WILL BENEFIT THEM AND HURT THE SMALL PEOPLE, THE UP-AND-COMING SMALL COMPANIES. I'M THINKING ABOUT MY STUDENTS INTERESTED IN BREAKING INTO THESE AREAS, WE WANT TO KEEP IT ROBUST FOR THEM BUT WE WANT TO DO IT SAFELY. YOU'VE EITHER GOT TO HAVE A HARD HAND ON REGULATION OR LETTER RUN AMOK, THAT IS NEVER HOW THE UNITED STATES HAS DONE BUSINESS. WHEN YOU DON'T REGULATE AT ALL, THAT IS A WILD WEST. YOU KNOW WHAT? SOMEBODY TAKES CONTROL AND YOU KNOW WHEN WE ARE TALKING ABOUT ANY MEMBER OF CONGRESS DEMOCRAT OR REPUBLICAN, LET'S SEE HOW MUCH MONEY THESE TECH EXECUTIVES AT THIS DINNER WITH DONALD TRUMP TODAY HAVE INVESTED IN THIS CAMPAIGN. THIS IS WHAT THE AMERICAN PEOPLE ARE CONCERNED ABOUT, THE SAME PEOPLE THAT PUT OUR CONGRESSPEOPLE AND PRESIDENT IN OFFICE ARE BENEFITING FROM WHAT IS COMING OUT OF THERE. SO WE NEED TO HAVE TRANSPARENCY ON THE AMOUNT WE ARE INVESTING AS WELL BECAUSE THAT IS UNDER NORMA'S CONCERN AS IT PERTAINS TO CORRUPTION. KAILEY: BLOOMBERG POLITICS CONTRIBUTORS AND OUR POLITICAL PANEL ON THIS AI DATE IN D.C., THANK YOU SO MUCH. IT IS UNCLEAR TO ME WHETHER OR NOT WE WILL GET VISIBILITY INTO WHAT WAS DISCUSSED. JOE: DO WE GET A READ OUT FROM A MEETING LIKE THIS? KAILEY: IF THERE IS SOMETHING TANGIBLE TO THE CONVERSATION. I KNOW A LOT OF THE PEOPLE TYLER KENDALL WAS SPEAKING WITH ONE OF THE WAY AND WERE RELUCTANT TO PROVIDE TOO MUCH. JOE: WE COULD ACTUALLY SEE ACTION MAYBE NOT ON AI REGULATION BUT ON DATA CENTERS. THE RATEPAYER PROTECTION ACT. SENATOR JOHN HOUSTON OF OHIO, WHETHER OR NOT DEMOCRATS HOLD THEIR NOSE AND GIVE HIM A WIN, BUT THAT WOULD BE ONE TO MARK ON THE CALENDAR. KAILEY: IT IS ONE WE WILL BE WATCHING HERE ON "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. ♪ CHARLIE: IT IS 1:40 ON WALL STREET. WE BEGIN WITH A HEADLINE RIGHT OFF THE BLOOMBERG PROFESSIONAL SERVICE. KALSHI IN TALKS TO RAISE $1 BILLION AT A $40 BILLION VALUATION. SOURCES TELL BLOOMBERG OPENAI AIMS TO RAISE AT LEAST $30 BILLION FROM INVESTORS AND A NEW ROUND OF FUNDING AFTER THE AI STARTUP PUSHES BACK PLANS FOR AN IPO. STOCKS LOWER, THE DOW, S&P, NASDAQ ALL IN THE RED BUT THE NASDAQ 100 BACK IN THE GREEN RIGHT NOW, LITTLE CHANGED. THE NASDAQ 100 INDEX UP UNDER 0.1%. THE S&P IS DOWN. DOW INDUSTRIALS DOWN 252. ONE OF THE DOW, A DECLINE OF 0.5%. THE VIX HOLDING JUST ABOVE 16. THE 10 YEAR 5.27%. MEANWHILE, TREASURY 30 YEAR YIELDS AT THEIR HIGHEST SINCE 2002. GOLD IS UP 0.7%. WEST TEXAS INTERMEDIATE CRUDE HOLDING JUST ABOVE $90 A BARREL, DOWN 2.5% TODAY. BRENT DOWN. BITCOIN NOW DOWN BY 0.4%. ALASKA AIRLINES IS GETTING A MAJOR LUXURY MAKEOVER. THE CARRIER HAS ANNOUNCED A NEW PREMIUM CABIN CALLED AURORA FEATURING SUITES ON ITS BOEING 787 AND SELECT MAX JETS. ALASKA AIRLINES SHARES DOWN 0.5% , WE HAVE UNITED UP. FOR ON DEMAND NEWS 24 HOURS A DAY SUBSCRIBED TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCAST. THAT IS THE BLOOMBERG BUSINESS FLASH. JOE: CHARLIE PELLETT, THANK YOU, SIR. CHARLIE WILL BE BACK WITH MORE AS WE KICK OFF BLOOMBERG BUSINESSWEEK DAILY. WE ARE TRYING TO RECOVER FROM THIS NUMBER. ONE POINT $4 TRILLION, OPENAI SEEKING A VALUATION AT THAT LEVEL NOT INCLUDING THE MONEY RAISED WITH NEWS IT PLANS TO RAISE AT LEAST $30 BILLION FROM INVESTORS IN A NEW ROUND OF FUNDING, REMEMBERING THEY RECENTLY DELAYED THE IPO SO THIS TIMING IS INTERESTING. KAILEY: WHEN WE CONSIDER THE IPO TIMING, SAM ALTMAN HAS POINTED TO THE SAFETY ISSUE THAT IT IS AN ILL-ADVISED TIME FOR THE COMPANY TO GO PUBLIC SO PERHAPS THIS FUNDING IS A BRIDGE TO RAISING THE IPO PROCESS, KEEPING IN MIND THE LAST RAISE WAS BACK IN MARCH. AT THAT TIME THEY RAISED 120 $2 BILLION IN A POST-MONEY VALUATION OF 852 BILLION DOLLARS, SO WE ARE TALKING WHAT? MORE THAN 600 BILLION DOLLARS ROUGHLY AND VALUE-ADDED JUST SINCE MARCH AS WE CONSIDER THE GROWTH OF THE COMPANY, THE QUESTION EXTENT TO WHICH THE GROWTH IS GOING TO BE ABLE TO CONTINUE IF THEY DO INTEND TO PURSUE AT LEAST IN SOME FORM OR FASHION A PACING OF NEW MODELS KEEPING IN MIND THAT ONE HAS BEEN DELAYED DUE TO SAFETY CONCERNS. JOE: IT IS ON ICE. ANTHROPIC WILL LIKELY BEAT OPENAI TO MARKET. THE DARIO I MONDAY STORY IS ITS OWN THING. WE KEEP PERFORMING TO THE MEETING UNDERWAY AT THE WHITE HOUSE. WITH THE SPEAKER OF THE HOUSE AND ALL OF THE EXECUTIVES. SAM INTERESTINGLY DELIVER THE KEYNOTE. I WONDER HOW THEY MADE THAT CHOICE. JENSEN HUANG IS IN THE ROOM ALSO. KAILEY: THEY ARE ANNOUNCING ALWAYS ON AGENT NEWS THAT CAME OUT FROM META AND SAM ALTMAN WILL BE MAKING HIMSELF AVAILABLE TO TALK TO ED LUDLOW IN THE 3:00 HOUR. JOE: FANTASTIC. A LITTLE BIT MORE THAN AN HOUR FROM NOW ON THIS AI DAY IN D.C. LAURA IS WITH US, FORMER DIRECTOR OF THE CYBER THREAT INTELLIGENCE INTEGRATION CENTER AT THE OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE. WELCOME BACK, GREAT TO SEE YOU. THIS DEBATE IS NOT GOING TO BE SETTLED TODAY, BUT AS THE PRESIDENT BRINGS THE WHO'S WHO OF AI INTO THE WHITE HOUSE AND IT IS A BIG ROBBER IN MOMENT, WE ARE WINNING THE RACE IS THE MESSAGE, DOES THAT QUELL THE CHORUS CALLING FOR REGULATIONS? THIS EXERCISE TODAY? LAURA: I DON'T THINK TODAY'S AI SUMMIT AT THE WHITE HOUSE IS CHANGING THE CRISIS OF TRUST WE HAVE BEEN SEEING IN D.C. ACROSS THE COUNTRY PLAY OUT OVER KEY AI ISSUES OVER THE LAST COUPLE OF WEEKS. IN THE CRISIS OF TRUST, IT IS REALLY JUST HOW SAFE ARE THE MODELS IT IS ABOUT HOW AI GETS DEPLOYED ACROSS INDUSTRIES AND THE ECONOMY AND RIGHT NOW THE AI COMPANIES, THE GOVERNMENT, EVERYONE IS SITTING HERE SAYING I THINK WE'VE GOT FUNDAMENTAL ISSUES WHERE THE FRONTIER MODELS DON'T HAVE THEIR ALIGNMENT SET BEEN AWAY WHERE THEY REALLY HAVE CONTROL OVER THEIR PRODUCT. YOU SEE OPENAI DELAYING THEIR RELEASE OF THE NEXT VERSION, I THINK THAT IS SMART ON A TON OF DIFFERENT LEVELS. THIS IS WHERE THE LABS THEMSELVES HAVE TO SHOW THAT THEY AREN'T JUST TALKING THE TALK ON AI SAFETY. SAYING DEAR GOVERNMENT, COME HELP US, THIS IS YOU ARE AT THE REAL FOREFRONT OF FIGURING OUT WHAT BENCHMARKS. KAILEY: IF YOU THINK THIS IS A CRISIS OF TRUST, YOU THINK THEY CAN BE TRUSTED TO DO THAT ONE THEIR OWN? LAURA: I DON'T THINK THEY HAVE SHOWN THAT OVER THE LAST COUPLE OF WEEKS AND THAT IS THE STATE OF FEAR YOU ARE FEELING ACROSS THIS ISSUE. IF YOU ARE WIND BACK TO 23, THERE IS THIS FORUM IN OF THE FRONTIER MODEL FORUM PUT TOGETHER ON THESE AI LABS AND A FEW OF THE OTHER LEADING AI COMPANIES AND THEY SAID WE NEED A WAY TO BE ABLE TO TALK TO EACH OTHER OVER THERE. DO YOU HAVE THE RIGHT SPEED AND OPERATIONAL WORK, DO YOU HAVE WHAT YOU NEED HERE? THE FOCUS HAS TO BE FOR THE PEOPLE WHO HAVE THEIR HANDS ON THE GEARS, WHO ARE LOOKING AT HOW THE MODELS WORK AND TESTING THEM, DO THEY HAVE THE DIALOGUE ON A FAST ENOUGH PACE WITH THEIR PEERS IN THE OTHER TWO OR THREE LABS TO BE ABLE TO BUILD SAFETY BACK IN? THAT IS HOW WE START AUTOMATING TRUST INTO THESE PRODUCTS. JOE: DOES THAT DIALOGUE NEED TO SPAN COUNTRIES AS WELL? LAURA: I THINK IT DOES, BUT LET'S START IT HERE. ONE OF THE DEVELOPMENTS I FOUND FASCINATING WAS THE MINISTER OF STATE SECURITY IN CHINA SO CHINA'S TOP INTEL GUY CAME OUT PUBLICLY IN A JOURNAL AND WROTE THAT AI CONTROL ISSUES COULD THREATEN THE REGIME IN CHINA. HE IS NOT JUST MAKING THAT AS A POLITICAL STATEMENT. HOW DO YOU PACE THE DEVELOPMENT IN A WAY THAT CAN CONTROL FOR CHINESE PURPOSES? THEY WANT TO BACKSTOP THEIR VALUES INTO THEIR MODEL. WE HAVE A VERY MESSY AND DIFFERENT DIALOGUE GOING ON IN D.C. BUT THE SAME URGENCY AROUND HOW DO YOU COUPLE INNOVATION WITH THE ABILITY TO SECURELY DEPLOY THESE MODELS? KAILEY: SO, LET'S TALK ABOUT SOME OF THOSE INNOVATIVE IDEAS AROUND SECURITY. OPENAI -- NVIDIA TALKED ABOUT A PARTNERSHIP WITH ANTHROPIC. LAURA: THE COMPANIES INVESTING AND HOW THEY PUT AI MODELS INTO ALL THE SERVICES YOU AND I TOUCH EVERY DAY. THOSE ARE THE FORCING FUNCTIONS. I'M ONLY GOING TO USE THIS IF I CAN TRUST THIS MODEL. THIS IS WHAT AN INCIDENT RESPONSE DISCLOSURE IS GOING TO LOOK LIKE. HERE ARE SOME OF THE ASSURANCE FRAMEWORKS WE ARE USING BEFORE WE DEPLOY A NEW MODEL. THOSE ARE THE SORTS OF FRAMEWORKS AND SYSTEMS THAT THESE LABS NEED TO START PUTTING OUT TO THEIR CORE CUSTOMERS AND PARTNERS AND THEN ALSO FINDING WAYS TO TALK ABOUT THAT WITH THE GOVERNMENT AND THE PUBLIC. JOE: THIS JENSEN HUANG RIGHT THAT IF THE WORLD DECIDES TO DEVELOP AI ON THE HUAWEI STACK AS OPPOSED TO THE NVIDIA STACK, THE U.S. INHERENTLY HAS LOST? LAURA: THIS STACK UNDERNEATH AI DEPLOYMENT IS SO VARIED ALREADY THAT I THINK IN A SENSE THE HORSE IS OUT OF THE BARN ON THE ABILITY TO EVEN HAVE A PEER AND SAY AMERICAN STACK VERSUS CHINESE STACK, THERE ARE SO MANY DIFFERENT DEPENDENCIES, ENERGY, COMPUTE, TALENT, THERE ARE ALL THESE TYPES OF MODELS BUILT ON TOP OF EACH OTHER. WHAT WE HAVE TO GO BACK TO HIS WHAT AN ORGANIZATION CAN CONTROL. WHAT WILL I GIVE THE MODEL CONSENT TO LOOK AT? HOW DO I PUT THE RIGHT SAFETY AND GOVERNANCE MODELS ARE USED. THESE ARE THE BASICS OF HOW WE DEPLOY TECHNOLOGY. WE NEED TO APPLY THIS FRESHLY AND WE NEED TO PUSH THE SAME KINDS OF RIGOR WE NEED TO HAVE THE SAME ASSURANCE. KAILEY: WHAT ARE YOUR THOUGHTS ANNOY KILL SWITCH -- CONCEPT? LAURA: I THINK IT IS EASY RHETORIC TO BE HONEST WITH YOU. A LOT OF WHAT IS UNDERNEATH THIS IDEA UNDERNEATH THE KILL SWITCH IS HOW DO WE HOW DO WE HAVE SOME LAST REDLINE THAT A MODEL CROSSES THAT SOMETHING HAPPENS? THAT IDEA IS GOOD. HOW DO YOU PUT AUTHORITY AND RULE-BASED RULES ABOUT HOW TO DO AI, BUT THE IDEA OF A KILL SWITCH, THIS IS SUCH A DIFFUSE TECHNOLOGY IT IS ALMOST LIKE SAYING HOW DO YOU FULLY CUT OFF SOMETHING THAT IS REALLY DEEPLY EMBEDDED, ALMOST LIKE ELECTRICITY, ACROSS CORPORATE AMERICA AND ACROSS A LOT OF SYSTEMS PEOPLE USE TODAY. JOE: WE JUST SURVIVED, IT APPEARS AT LEAST, WE JUST APPEAR TO HAVE SURVIVED THE SAASPOCALYPSE IN WHICH ALL SOFTWARE COMPANIES WERE LEFT ON THE SIDE OF THE ROAD BECAUSE AI WAS GOING TO VIBE CODE EVERYTHING INCLUDING CYBERSECURITY. WE HAVE CHANGED OUR VIEWPOINT AS A MARKET ON THIS AND MY GOSH IT IS A NEW ALL-TIME HIGH AT SEEMS EVERYDAY FOR CROWDSTRIKE AND PALO ALTO. SHOULD THIS BE A MORE PRONOUNCED CONVERSATION WITH THE COMPANIES THEMSELVES? HOW CAN WE SECURE OURSELVES FROM THESE MODELS IF THE SECURITY PROVIDERS ARE NOT IN CONVERSATION WITH THE MODEL DEVELOPERS? SHOULD CROWDSTRIKE BE AT THE TABLE? LAURA: THE CYBERSECURITY COMPANIES ARE REALLY CRITICAL COMPONENT TO HOW DO YOU BUILD TRUST IN AI DEPLOYMENT? YES, THEY NEED TO BE IN THE CONVERSATION. EARLIER IN THE SPRING YOU SAW THE EFFORTS FROM THE LABS, GLASS WING, DAYBREAK, WHICH WERE ATTEMPTS TO FIGURE OUT HOW DO YOU PUT AI TOOLS AND MODELS IN THE HANDS OF THE CYBERSECURITY INDUSTRY FIRST IN ORDER TO SCALE HOW AI DEPLOYMENT CAN BE USED FOR DEFENSE VERSUS OFFENSE? THOSE EFFORTS NEED TO BE WHITER AND STRONGER AND THOSE OF THE TRUST, CONFIDENCE BUILDING MEASURES THAT WILL START TO SAY, FOLKS ON THE FRONTLINE WHO HAVE TO DEFEND THE WATER SYSTEM OR DEFEND AN ENERGY PLANT, WE WANT YOU TO HAVE THE BEST TOOLS TO BE ABLE TO KNOW WHEN SOMEONE IS UNAUTHORIZED, WHETHER THAT SOMEONE IS IN AIA GENT OR WHETHER THAT IS A SPY FROM ANOTHER COUNTRY. WE WANT YOU TO HAVE THE ABILITY TO DEPLOY THE BEST TOOLS OUT THERE TO KNOW WHEN YOUR SYSTEM HAS BEEN BREACHED, SO YES, THIS IS AN ONGOING DIALOGUE BETWEEN CYBERSECURITY AND THE AI LABS. KAILEY: ARE THE CRITICAL INFRASTRUCTURE COMPANIES READY FOR THIS MOMENT RIGHT NOW? LAURA: INFRASTRUCTURE OPERATORS ARE LOOKING AT THIS AND SAYING, I NEED TO SHORE UP AND FIGURE OUT A BETTER WAY TO DO TO A GOOD JOB ON CYBERSECURITY. THE LEAST AMOUNT OF PRIVILEGE I CAN GIVE TO USER ON A. I ONLY WANT THEM TO ACCESS WITH THE NEED TO ACCESS. I NEED VISIBILITY ACROSS ALL MY OPERATIONAL COMPONENTS. AND I NEEDED ON MY CORPORATE NETWORK AND I WANT THOSE TO BE SEPARATE. THIS COMES DOWN TO A LOT OF THE SAME BASICS AROUND HOW YOU RUN A GOOD SECURITY PROGRAM. AND A LOT OF INFRASTRUCTURE OPERATORS I WORK WITH WILL SAY IT IS REALLY A RED HERRING TO GET TOO FOCUSED ON HOW AI IS GOING TO CHANGE FUNDAMENTALLY THE RAY THAT I RUN MY PLANT, I JUST NEED TO KEEP RUNNING THIS IN A WAY WHERE I CAN OPERATE WITH THE MINIMUM VIABLE OPERATIONS TO KEEP THE WATER GOING, TO KEEP THE ELECTRICITY RUNNING, THAT IS GOOD PRACTICES. THAT IS WHERE A LOT OF THESE OPERATORS ARE REALLY SAYING, LET'S CUT THROUGH THE NOISE AND MAKE SURE WE ARE SECURE. KAILEY: LAURA GALANTE, GREAT TO HAVE YOU HERE. HERE WITH US IN OUR WASHINGTON, D.C. STUDIO, AT A TIME WHEN D.C. IS FIXATED ON THIS AND THE WHITE HOUSE ESPECIALLY AS THEY HAVE GATHERED ALL THESE AI AND TECH EXECUTIVES FOR LUNCH TODAY TO TALK ABOUT SOME OF THESE VERY ISSUES. SAM ALTMAN WILL ALSO BE TALKING ABOUT THEM TODAY AT 3:00 P.M. AS BLOOMBERG BREAKS THE NEWS WITH OUR COLLEAGUE ED LUDLOW THAT OPENAI IS GETTING READY TO RAISE $30 BILLION IN MONEY. JOE: CHARLIE PELLETT WILL HAVE MORE COMING UP ON THIS AS WE CHECK THE MARKETS AHEAD. WE WILL MEET YOU BACK HERE FOR THE LATE ADDITION OF "BALANCE OF POWER," MAYBE WE WILL HAVE A SENSE OF WHAT IS SAID IN THAT ROOM TODAY. IT STARTS AT 5:00 P.M. EASTERN ONLY HERE ON BLOOMBERG TV AND RADIO. ♪